SEI Investments (SEIC) Stock Forecast & Price Target

SEI Investments demonstrates a strong positive outlook due to an increase in the institutional investors margin, which rose to 48.3% from 47.6%, indicating improving profitability across its segments. The company has exhibited consistent growth driven by rising asset values and a robust pipeline, particularly in private banking and alternatives, which positions it well for future expansion. Additionally, SEI's Stratos segment shows promising performance with a 10% organic growth rate and a significant 40%+ EBITDA margin, further supporting the positive financial trajectory of the organization.

SEI Investments has experienced a decline in operating margins across its segments, with the private banks margin dropping to 16.1% and a consolidated operating margin decreasing to 27.2%, down from 28.5% in the previous quarter, indicating pressure on profitability. Moreover, net sales events significantly fell to $29.2 million from $46.6 million in the prior quarter, signaling a potential slowdown in new business generation despite a slight beat of estimates. Additionally, management has warned that margins are expected to remain at these lower levels through year-end, prompting downward revisions in earnings per share estimates for 2025 and 2026.